Corvus Financial LLC currently purchases Certificates of Purchase for real property tax liens in the state of Arizona, and is in the process of expanding into additional jurisdictions. Lien pools are stratified according to two different criteria:
Tranche 1 – 10% Portfolio Weighting
Residential properties believed to have the highest propensity to foreclose. The target for Tranche 1 is to acquire liens that will enable Corvus Financial, LLC or one of its clients to foreclose on the property owner's right to redeem after a state-required waiting period (typically three years).Very few tax liens actually end up in foreclosure, so Tranche 1 properties are the proverbial "needle in a haystack."
Tranche 2 – 90% Portfolio Weighting
Residential properties believed to produce the highest yield to maturity. Although stated interest rates for tax liens can be quite high (16% simple interest maximum in Arizona for example), many liens redeem early which creates reinvestment risk. The target for Tranche 2 is to acquire liens that have both a high interest rate, as well as a maturity time that is as close to the minimum holding period for foreclosure as possible.
Tranche 1 – 10% Portfolio Weighting
Residential properties believed to have the highest propensity to foreclose. The target for Tranche 1 is to acquire liens that will enable Corvus Financial, LLC or one of its clients to foreclose on the property owner's right to redeem after a state-required waiting period (typically three years).Very few tax liens actually end up in foreclosure, so Tranche 1 properties are the proverbial "needle in a haystack."
Tranche 2 – 90% Portfolio Weighting
Residential properties believed to produce the highest yield to maturity. Although stated interest rates for tax liens can be quite high (16% simple interest maximum in Arizona for example), many liens redeem early which creates reinvestment risk. The target for Tranche 2 is to acquire liens that have both a high interest rate, as well as a maturity time that is as close to the minimum holding period for foreclosure as possible.